Clients need to understand new risks in fixed income - Patrick Connolly

'Diversification of managers to mitigate risk'

Victoria McKeever
clock • 2 min read

Clients need to understand the current capital risk in fixed income, as low yields mean it no longer provides the same role of security in an investment portfolio, Patrick Connolly has warned.

The Chase de Vere chartered financial planner said the rising price of fixed income, which followed the growing popularity of government bonds and the lowering of bond yields, presented risks investors needed to be made aware of. Connolly (pictured) said: "Clients have always thought the fixed income part of their portfolio would ensure the security of their investment, however that's not necessarily the case anymore. "Clients need to understand the risk to capital this [price] shift presents, if they hold 60% of their portfolio in fixed income for the purpose of giving security to in...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Why investors need to think about emerging markets a little differently

Why investors need to think about emerging markets a little differently

'Emerging markets are starting to look eerily similar to developed'

James Flintoft
clock 29 October 2025 • 3 min read
Watch PA's Working Lunch with Baillie Gifford: Acting your age – when growing up pays off

Watch PA's Working Lunch with Baillie Gifford: Acting your age – when growing up pays off

Catch up on the discussion

Professional Adviser
clock 29 October 2025 • 1 min read
Direct engagement and the search for hidden gems

Direct engagement and the search for hidden gems

'What really matters is that investors do not find themselves behind the eight ball'

Gabriel Sacks
clock 27 October 2025 • 4 min read